Which of the Following Represents One Way the Fed Increases

question 208

Multiple Choice

Which of the following represents one way the Fed increases the amount of money in circulation?

• A) Reduce taxes
• B) Raise the discount rate
• C) Buy government securities
• D) Increase the reserve requirement

---

Definitions:

Licensing Fees

Payments made to obtain permission to use someone else’s property, such as intellectual property, under agreed conditions.

Popular Culture

Encompasses the set of ideas, perspectives, attitudes, images, and other phenomena that are within the mainstream of a culture, especially those disseminated via mass media.

Innovation Success

The achievement of desired outcomes and impacts from new ideas, products, or processes, measured by criteria such as adoption, profitability, and market penetration.

Return on Investment

calculates the financial return on a particular investment relative to its cost, to evaluate its efficiency.